Anchorage Digital Launches Innovative Custody Exchange Network for Institutional Clients

A New Era in Crypto Custody

Anchorage Digital has recently taken a monumental step in securing institutional client assets by launching a custody exchange network. This ambitious move aims to forge safe and regulated vaults for funds, effectively keeping them separate from the exchanges. No more throwing caution to the wind—this is about keeping it safe, folks!

Partnership Powerhouses

Anchorage has teamed up with a compelling cast of five digital trading platforms including Binance.US, CoinList, Blockchain.com, Strix Leviathan, and Wintermute. This powerhouse alliance enables institutions to dive into a much wider pool of trading pairs without the panic of improper asset storage.

Benefits for Institutions

• Regulated Environment: Clients can now fulfill their fiduciary duties while knowing their assets are shielded in a manner befitting traditional finance.
• Peace of Mind: Forget the sweaty palms—knowing that assets aren’t lounging in perilous hot wallets gives institutional clients a sigh of relief.
• Lifecycle Security: Holding assets through a custodian means every step of a transaction is taken care of, making the trading process smooth and secure.

Words from the Top

Diogo Mónica, co-founder and president of Anchorage, aptly remarked on the evolution of the crypto ecosystem beyond just “hodl”—oh, how far we’ve come from merely holding on for dear life! His recent tweet celebrated the importance of institutions having a secure entry point to participate in this vibrant market.

“As the crypto ecosystem has evolved beyond ‘hodl,’ institutions deserve to participate as safely and seamlessly as possible.” – Diogo Mónica

Industry Trust Issues

Nathan McCauley, the CEO of Anchorage Digital, echoed a sentiment that resonates well within both the crypto and traditional finance realms. He emphasized that custodians and exchanges must operate distinctly. To gain trust from institutional investors, the crypto sector must play ball by the same rules as conventional finance.

Sailing Through Regulatory Waters

This bold move comes on the heels of scrutiny from the United States Office of the Comptroller of the Currency (OCC), which hinted at possible regulatory issues for Anchorage concerning Anti-Money Laundering protocols. But no amount of regulatory turbulence can stop progress here! Anchorage previously committed to improving identified shortcomings, showcasing their proactive approach to compliance.

Valuation Leap

And let’s not overlook the cash influx Anchorage experienced. Back in December 2021, they secured a whopping $350 million in funding, lifting their valuation to over $3 billion. With KKR joining the fold, it marked a significant milestone, as this was KKR’s first venture into the cryptocurrency space. Welcome aboard, we’re considering popcorn for the future!